Bermuda-based Teekay Corporation announced that it has signed a new fixed-rate contract with Petroleo Brasileiro SA (Petrobras) to provide a floating production storage and offloading (FPSO) unit for the Tiro and Sidon fields located in the Santos Basin off the coast of Brazil.

The contract with Petrobras will be serviced by a new converted FPSO unit, to be named the Petrojarl Cidade de Itajai, which is currently under conversion from an existing Aframax tanker.